GROUP 3 FINAL PRESENTATION Mother Earth Marketing Plan

GROUP 3

FINAL PRESENTATION

Mother Earth

Marketing Plan

**Cocoy Amador ** Haydee Aunzo ** Harry Kuma**

**Des Manlapaz ** Jerome Paras**Jean Reyes**

Submitted to: Prof. E. Soriano

July 16, 2009

Meat supply and consumption in 2008 declined by 3.48%.

In 2007, backyard supply (# heads) : 72% pork, 94% beef.

Growing meat import indicate an increasing domestic demand that outpace supply, demand for quality meat.

In the first quarter of 2009 livestock industry expanded at 2.4% over the same period in 2008

MACRO ECONOMICS

Supply & Utilization

Supply and utilization of Livestock (metric tones)

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2005 2006 2007P 2008(est)

Carabao

Goat

Beef

Pork

Pork79%

Beef10%

Goat3%

Carabao8%

Share of 2.3 million metric tones of Carcas (2008)

Philippine is a pork eating nation. Of every 10kg of meat consumed, about 8kg is pork.

The consumption rate for pork has also steadily improved from 4.3% in 2007 to 6.1% in 2008.

Supply & Utilization

PRICE

Price Margin between pork and beef widens at wholesale and retail point with beef becoming more expensive.

In 2009 percentage increase in price:

Pork : Retail (0%), Farm-gate (8%)

Beef: Retail (9%), Farm-gate (10%)

Price variation (Farm-gate and retail) ranges from 200% to 300%

Retail price of Pork Ham, and Beef Rump – Farmers market

Livestock Production in Luzon, 2007

(in metric tone live weight)

Geographic segmentation

Consumption is 37.3% of Total country

consumption

Of the 37.3%, MEPI’s share is 0.17%

Consumer Profile • Increasing Purchasing Power (OFW Remittance, BPO's in MM & in provinces)

– Prefers to shop in Supermarket/Convenience stores vs Wet Market

– Celebrates by having more meat

Increasing Household Expenditures

– Food regularly consumed outside home

– 3.4% (1988), 5.0% (2000), 5.3% (2003)

• Intro to Western style fast food chains due to BPO exposure & internet

– 52M consumers <30 y.o.

Consumer Profile - cont

• Busier & Fast-paced Lifestyle – One-Stop Shop, merchandise +service

– Easy to prepare, ready to cook/eat food

– Dine Outside at full service or at speed

– Drive thru's/ Take out Window

• Preference for affordability & unique experience– Global Financial crisis forces “more value for money”

– International dishes

– 37% of consumer expenditure ($28.3B) on food, 27% increase by 2015

• Increased awareness for food quality & safety

– (food-borne outbreaks, animal-human diseases,

– chemical residues, dietary concerns)

Micro-Envt: Mother Earth Products Inc (MEPI) • Founded by the CEO/President Atty Renato Tayag, Jr. • Original focus on cattle breeding & fattening but due to to

Pinatubo eruption, Asian Financial Crisis, it had to diversify to prime cuts & processed meat

• Now located at Dau, Pampanga • W/ “AAA” accreditation by NMIS (SSOP, GMP, HACCP) • Customers include Robinsons, Waltermart, Max, Jollibee,

Makro, Northpark Noodles & more • Products & Services:

– Choice Cuts & Processed Meats, – Tolling & Tesda Trng Center

MEPI SALES PERFORMANCE ('07-'09 td)

CURRENT OPERATIONS: 250+cattle/month ~ 20MT primal cuts 2000+hogs/month~ 80MT primal cuts

Sales(P) : 0.18% of 2007 Market (386M) Growth Rate: Ave +20% from '07 to '08

2009 Ave Sales: Php33M

SUPPLY CHAIN

CATTLES & HOGS

SLAUGHTERHOUSE

PRIME CUTS(22% beef, 48% pork) -

hyperlinked

PROCESSEDMEAT

(30% sales)

BIODIESEL MATERIALS

OFFALS

HOTEL (9%)

RESTO's/FFC (46%)

DEALERS (9%)

SUPER-MARKETS

(35%)

“Unclassified”

Top2070%

Other 30%

NOTE : SINCE RAW MATERIALS ARE LIVE ANIMALS, MEPI MUSTSELL ALSO PROCESSED MEATS

MEPI SALES BY CUSTOMER TYPE

• → 12% - 6 New Big Names, (hotel & resto),discovered MEPI via word of mouth

• → Supermarkets – slower MEPI sales growth despite of the allocated mktg budget

• → 30% - uncategorized customers

SWOT – In Summary... Strengths Weaknesses

GMP + HACCP Accredited (Slaughterhouse+ processing plant) Strategic Location (50miles fr MM)Carries Kapampangan Taste, able to customize cuts Price 33% lower than Premium (TJ) TESDA trng center on butchery 20% sales growth w/ limited mktg

Biz model is tactical (centric on daily order fulfilment) / weak PPC, 21% CU, 1 mo WIP No long term plans & executable strategies for growth Lack of integrated database to monitor progressMktg activities focused on Supermarket penetration

Opportunity Threat

Inc customers by word of mouth Inc Purchasing power Preference on “ready to eat” due to changing lifestyleGrowth of FFC's/RestoGlobal F Crisis – “more value for money”Increased awareness on Food Q&S

Import substitution (lower price) Price Fluctuation Customer high regards on branded products (TJ, CDO, Mekeni, Monterey) Global F-Crisis – hold buyingPeriodic outbreaks of food-borne illnesses,animal diseasesAggressive industry leaders (mktg strategies)

Competitors Profile – Haydee

Haydee, I suggest that u capture a side-by-side comparison of the

Competitors.

Pls put bulletized “key messages” like which are the industry BKM

Segmentize based on product.

Many data but 'PUNCH” is not obvious.

Purefoods MekeniCDO

Garcia’s Meat Shop

POSITIONING . . .

COMPANY NAME: MOTHER EARTH PRODUCTS INCBRAND: MAN-YUMMY! TAGLINE: “Heavy in the belly... Easy in the pocket!”VALUE PROPOSITION: “FOOD TREATS”

ATTRIBUTES: 1. PAMPANGA MADE 2. SAFE & W/ HIGH QUALITY 3. AFFORDABLE 4. CUSTOMIZED 5. SUPPLY GUARANTEED

Phil Meat Market Structure

JEROME – REBRANDING (MAN-YUMMY!)

• 5 Brand Attributes & Experiences • * touch on Identity, Behavior, Performance

• APPLY THE SMART PRINCIPLE

Objectives

Short Term (1 year)

Medium Term (2 to 4 years)

Long Term (5 to 7 years)

2P/PRICING -DES

• Pls insert here & send

3P/ DISTRIBUTION STRATEGIES

• Hayds, • We agreed to have a General assembly to entice the

distributors. • Logo's are just Supermarkets.... How abt the hotel &

resto's which compose the bigger chunk of our sales.

Strategy #1Mother Earth Products INC. (MEPI) needs to strengthen strategic partnership with

retailers. MEPI also needs to take the option of joining the SM bandwagon. The strategy will realize the household penetration in Metro Manila area.

Strategy #2

Establish strong presence in provincial areas through Distributorship. Target areas are Central Luzon, Northern Luzon and the Metro Manila areas for the first year. Second Year conceration will cover on Luzon provinces. Five years target is to have nationwide Distribution.

Strategy #3

• Capitalize on the fast pace life and changing lifestyle of the Filipinos. Introduce a kiosk type food outlets in schools, BPO and Call Center areas that will showcase Mother Earth Products.

FOOTLONG VALUE MEALS

4P/ PROMOTION – COCOY

Promotions Decisions• Sales Promotions• Advertising• Public relations• Personal Selling• Direct Marketing

Application: Integrated Marketing Communications to the plan

PromotionsFactors considered for the development of an optimum promotion mix:1. Product factors – Relates principally to the way a product is bought,

consumed, and perceived by the customer.

Alternative to the common brands in the market

USP – Proudly made in Pampanga. Tastes just as good (if not better) yet more affordable!

2. Market Factors – The position of the product in its life cycle.

Growth Stage

Sampling – most common strategy employed by its competitors

3. Consumer Factors – Marketed for household consumption or organization

Primary target are mothers

4. Budget factors – Influences the types of promotions to be undertaken

Below the line advertising

Communication Model (AIDA)

Attention --> Interest --> Desire --> Action

•Attention - Below the line advertising (flyers, leaflets, discount coupons)•Interest – Proudly Made in Pampanga. Tastes just as good (if not better) and more affordable•Desire – Through sampling at supermarkets and selected occasions/events •Action – Conveniently available (through strategic distribution channels) for customers to purchase

Advertising Personal Selling PromotionsPublic

Relations• Biz Support at

selected supermarkets

• Flyering/leafleting at selected

supermarkets

• Participate in Pistang

Kapampangan King Sinukwan

• Start internet blogging at their

website. Use social networking sites such as multiply,

facebook.

• Send food for VJ/DJ at radio

stations and be acknowledged on –

air

• Aggressively get retailers/dealers to

market their products by providing marketing collaterals and giving

tiered incentive scheme

• Sales meetings/presentations with retailers/dealers

• Build a high performance sales culture for Account

Executives by rewarding performers

• Equip promodisers with selling and

customer service skills through extensive

training

• Product tasting/sampling in

selected supermarkets.

• Buy 1 kilo and get a free lunch box

• Attractive Point-of-Sale displays in

supermarkets (x-stand banners, wobblers, etc.)

• Join discount catalogues of selected

supermarkets

Word-of-mouth advertising

(continue to build on relationships with existing clients)

• Join more organizations and trade fair shows.

• Socialize and build relationships with

key contact persons/decision

makers for HORECA clients.

Short Term (1 year) * can be continued to med-long term depending on its success

PROMOTION MIX

Advertising Personal Selling PromotionsPublic

Relations

• Billboard at NLEX in time for summer (before holy week)

• TV/Radio/Newspape

r Advertisement (tri-media)

• Place ads on Yahoo!

Philippines/Yehey and other often

visited sites

• Create an attractive

online purchasing section at MEPI’s

website (possible tie-up with MyAyala.com)

• Raffle Promos (Ex. Buy Php500 worth of MEPI

products and get a chance to win a trip for 2 to Boracay inclusive of

Airfare)

• Host cooking demo’s in supermarkets and malls

• Sample gourmet style packaging of hams and sausages (ala Santi’s)

• Loyalty Card similar to Monterey’s MVP card

• Join community activities in

Pampanga and other surrounding

provinces (basketball league,

charitable donations)

• Be featured in a newspaper and/or

magazine

Long-Term (2 - 4years)

Establishing the Budget

The Group recommends the combined use of % of sales and the objective-and-task method to establish the budget. It is imperative that stakeholders would like to make sure that the cost-benefit of each project is advantageous to the company.

Projected results of Marketing Promos

The effectiveness of Marketing campaigns is projected to increase sales slowly by 15% on the first year and up to 40% on the 4th year.

Break-Even Analysis and justification of Promotion Mix

To be detailed in the Marketing Plan

Marketing Calendar

There should be a quarterly, monthly and weekly coverage of marketing activities.Promotions should be planned way ahead before the start of the year but provisions can be made for activities that are necessary in response to changes in market conditions/practices. Below is a sample of its calendar for 2010.

CRISIS MGT , ECONOMY/CSR/GREEN ADVOCACIES/ – JEROME or COCOY? • Crisis Mgt – sent by Jerome (word file) • Jerome, I suggest you define the roles & responsibilities

of each member of the CMT. Define Escalation procedure also based on gravity of the issue.

• To whom are they going to report the issue, at what time (ex: after 2 hrs) upon detection of issue. Who among the CMT is to stand as spokesperson to assess whether a closelooping w/ the concerned party is required? What is the operating philosophy among them? Drop everything & convene at the conference room or via conference call?

BACK UP FILES

ORGANIZATION & BIZ MODEL

CEO

COO CFO

HR Sales &

Mktg TRNG CTR

PRODN QC

MAINT

R&D

MEATPROC

Cashier

Acctg

Purchasing

Credit

InternalAudit

SLAUGHTERHOUSE